NOV Inc. (NOV)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 8,870,000 | 8,583,000 | 7,237,000 | 5,524,000 | 6,090,000 |
| Total current assets | US$ in thousands | 5,770,000 | 5,840,000 | 5,493,000 | 4,902,000 | 5,209,000 |
| Total current liabilities | US$ in thousands | 2,347,000 | 2,435,000 | 2,437,000 | 1,910,000 | 1,867,000 |
| Working capital turnover | 2.59 | 2.52 | 2.37 | 1.85 | 1.82 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $8,870,000K ÷ ($5,770,000K – $2,347,000K)
= 2.59
The working capital turnover ratio for NOV Inc. has been showing an increasing trend over the years, indicating the company's ability to effectively utilize its working capital in generating sales.
From December 31, 2020, to December 31, 2024, the working capital turnover ratio has improved from 1.82 to 2.59. This suggests that NOV Inc. has become more efficient in managing its current assets and liabilities to support its revenue generation process.
The consistent growth in the working capital turnover ratio reflects NOV Inc.'s enhanced operational efficiency and effectiveness in converting working capital into revenue. This improvement demonstrates the company's ability to optimize its resources efficiently, which could positively impact its overall financial performance and profitability in the long term.
Peer comparison
Dec 31, 2024